K V Kamath named head of BRICS Bank

Eminent banker K V Kamath was on Monday appointed as head of the US $50 billion New Development Bank being set up by the five emerging economies of BRICS grouping.

Kamath will have a five year term of the bank, which is likely to be operationalised within one year, Finance Secretary Rajiv Mehrishi said.

Kamath is the Chairman of the India's largest private sector bank ICICI.

After serving at ICICI for more than a decade, Kamath had moved to Asian Development Bank, Manila, in the Private Sector department in 1988. His principal work experience at ADB was in various projects in China, India, Indonesia, Bangladesh and other emerging nations.

In February this year, Union Cabinet cleared the creation of the proposed 5-nation BRICS bank that will mobilise resources for infrastructure projects and provide short-term liquidity to emerging economies in case of payment crisis.

The proposal was approved at the Cabinet meeting, chaired by Prime Minister Narendra Modi.

Heads of the five nation BRICS group -- Brazil, Russia, India, China and South Africa -- decided last year to create a development bank as well as a reserve fund to finance infrastructure projects and to head off future economic crises.

The bank, aimed at funding infrastructure projects in developing nations, will be headquartered in Shanghai, and India will preside over its operations for the first six years, followed by five-year terms for Brazil and then Russia.

India will hold the Presidency of the USD 100-billion New Development Bank for the first six years. The Bank will be based in Shanghai, China's financial hub